Finding your perfect home can be challenging — often, the ideal property needs a little TLC. Whether it’s outdated paint, worn flooring, old fixtures, or minor repairs, many homes come with imperfections. While some buyers are happy to tackle these issues themselves, others prefer a home that’s move-in ready.

If you’re considering a home that needs some upgrades, the Purchase Plus Improvements (PPI) mortgage program might be the perfect solution for you. This specialized mortgage product helps buyers finance simple home improvements as part of their mortgage, making it easier to purchase a home that isn’t quite perfect — yet.

What Is Purchase Plus Improvements (PPI)?

PPI allows you to borrow additional funds to cover the cost of home improvements, rolled into your mortgage. It’s designed for simple renovations, not major structural changes. Typical improvements covered by PPI include:

• Painting and flooring
• Window replacements
• New hot water tanks or furnaces
• Kitchen and bathroom updates
• Roof repairs or replacement
• Basement finishing
• And more

How Much Can You Borrow?

The amount you can borrow for improvements depends on your mortgage type (conventional or high-ratio), insurance status, and the insurer. Generally, PPI lets you borrow between 10% and 20% of the home’s initial purchase price to fund your renovations.

What Makes PPI Different from a Regular Mortgage?

One key difference is the requirement for quotes on the planned improvements. Your mortgage professional and lender will need detailed cost estimates for the renovation work as part of the approval process. These quotes help confirm the scope and budget of your improvements.

Once approved, the lender releases the mortgage funds to your lawyer. The portion allocated for renovations is held back until the work is completed. You’ll pay the contractor directly, and after the renovations are finished and inspected, the lender will authorize your lawyer to release the remaining funds.

Getting Started with Purchase Plus Improvements

If you’re interested in buying a home that needs some work, the first step is to connect with a knowledgeable GB Sowards Mortgage advisor. They will evaluate your financial situation, explain how PPI applies to your mortgage, and help you understand:

• How much you qualify to borrow for improvements
• What types of renovations can be included
• Which homes fit your budget and renovation plans

With expert guidance, you can confidently shop for a home that suits your needs — even if it requires some upgrades — knowing you have the financing in place to make it truly yours.